Re: insurance

[Owen DeLong <owen () delong com>]

On Sep 20, 2011, at 8:15 AM, Jack Morgan wrote:

> Randy,
>
> On 09/20/2011 08:10 AM, Randy Carpenter wrote:
> > ----- Original Message -----
> > > On Tue, 20 Sep 2011 07:59:00 EDT, harbor235 said:
> > > > Curious if anyone out there is acting as an independent contractor,
> > > > consultant,  or small business,
> > > > if so do you use professional liability insurance?
> > >
> > > I don't consult myself, but is *anybody* crazy enough to do
> > > consulting
> > > in the litigation-crazy US without carrying errors-and-omissions
> > > insurance?
> >
> > The reality is that with the mega-insurance companies able to set whatever crazy premiums they feel like, and raise 
> > them every other month, the cost of being fully insured is sometimes more than what you can charge as a consultant.
>
> This is just not true. Insurance companies are regulated by State
> Insurance boards. If an insurance company wants to raise rates, they
> have to submit a proposal to the their state insurance board. They can
> only raise rates for a "class" of customers. For example, all customers
> aged 50 - 62.

This is generally NOT true for E&O and Professional liability insurance.

For the most part, that goes largely unregulated. The state insurance boards
tend to focus on consumer-oriented forms of insurance (auto, home, life).

Owen